Question

The accounts receivable account of Brownstone, Inc. has the following postings: Credit: 3,000 Debit: 23,000 & 2,000 Calculate the ending balance of the account.

a. $28,000 debit
b. $25,000 debit
c. $3,000 credit
d. $22,000 debit

Answer 1

The ending balance of the accounts receivable account is $22,000 debit.

Step-by-step explanation:

The ending balance of the accounts receivable account can be calculated by subtracting the total credit postings from the total debit postings. In this case, the total credit postings are $3,000 and the total debit postings are $23,000 + $2,000 = $25,000. Subtracting $3,000 from $25,000 gives us an ending balance of $22,000 debit.